Berkshire Hathaway is experiencing technical weakness, failing to close above its 200-day moving average for six weeks. These actions attract analysts' attention.
Long Stretch Below 200-Day Moving Average
Berkshire Hathaway has not closed above the 200-day moving average since early July, marking the longest period in nearly three years. This raises questions about the current situation inside Warren Buffett's investment company, especially against the backdrop of a rising stock market.
Apple Stake Reduction and T-Mobile Exit
The company has made several significant decisions. Berkshire reduced its stake in Apple by 20 million shares, resulting in a $9.2 billion decrease. Apple remains the largest position in the portfolio, yet the cut raises concerns. Additionally, Berkshire completely exited its investment in T-Mobile, demonstrating caution regarding the telecom sector.
Investments in UnitedHealth and New Strategies
The company also took an unexpected step by investing $1.6 billion into UnitedHealth Group despite a federal investigation into Medicare accounting issues. This decision significantly impacted the market, with UnitedHealth shares rising nearly 12%. Analysts note that Berkshire's investments could signal to other investors about a potential recovery for the sector.
In the current situation, Berkshire Hathaway's investments raise numerous questions and discussions. Despite the exit from some positions, the company's strategy regarding new investments may indicate its development in challenging market conditions.
